Apple's iPhone 17 Pro series will stick with 3nm chips: TSMC's 2nm yield and cost challenges cause delay

Apple's iPhone 17 Pro series will stick with 3nm chips: TSMC's 2nm yield and cost challenges cause delayApple originally planned to use TSMC's latest 2nm processor chips in its iPhone 17 Pro and iPhone 17 Pro Max models. However, this plan has been delayed due to the high cost and capacity limitations of TSMC's 2nm process

Apple's iPhone 17 Pro series will stick with 3nm chips: TSMC's 2nm yield and cost challenges cause delay

Apple originally planned to use TSMC's latest 2nm processor chips in its iPhone 17 Pro and iPhone 17 Pro Max models. However, this plan has been delayed due to the high cost and capacity limitations of TSMC's 2nm process. According to media reports, TSMC is currently conducting trial production of its 2nm process at its Baoshan factory in Hsinchu, but the initial yield is only 60%, meaning that 40% of wafers are unusable. The cost per wafer is a staggering $30,000. This high cost and low yield forced Apple to reassess its product plans, ultimately deciding to postpone the commercialization of 2nm chips until 2026.

This means the highly anticipated iPhone 17 Pro and iPhone 17 Pro Max will continue to use TSMC's 3nm process. While this news might disappoint consumers expecting a significant performance leap from the 2nm chip, it also highlights the complexity and challenges of advanced process chip production.

TSMC detailed the key technical specifications of its 2nm process at IEDM 2024. Compared to the 3nm process, the 2nm process boasts a 15% increase in transistor density, allowing more transistors to be packed onto the same chip area, thus improving performance. Furthermore, at the same power consumption, the 2nm process offers a 15% performance improvement; conversely, at the same performance level, power consumption can be reduced by 24%-35%. These figures are impressive, suggesting significant performance and energy efficiency gains from the 2nm process.

A major highlight of TSMC's 2nm process is the introduction of GAA (Gate-All-Around) nanosheet transistors. This new transistor structure effectively adjusts the channel width, achieving a better balance between performance and energy efficiency. By precisely controlling the size and shape of the transistor channel, GAA nanosheet transistors can achieve higher performance and lower power consumption at lower voltages. Specifically, TSMC's 2nm GAA nanosheet transistors can achieve significant energy efficiency improvements at a low voltage of 0.5-0.6V, which is crucial for extending the battery life of mobile devices.

However, technological breakthroughs often come with high costs and challenges. The initial yield of TSMC's 2nm process is only 60%, resulting in significant wafer waste and a substantial increase in chip production costs. The $30,000 cost per wafer further exacerbates the problem, making the overall production cost of 2nm chips significantly higher than 3nm chips. This high cost will not only affect Apple's product pricing strategy but may also limit the market applications of 2nm chips.

As one of the world's largest consumer electronics manufacturers, Apple's product release plans and technology choices are closely watched. The postponement of 2nm chip commercialization until 2026 reflects the real-world constraints of advanced process chip production. While the 2nm process offers significant advantages in performance and energy efficiency, high costs and low yields remain major obstacles to its mass production.

Apple's decision also reflects its emphasis on product quality and cost control. Rather than rushing to adopt a low-yield, high-cost 2nm chip, it's opted to continue using the mature 3nm process, ensuring the timely release of the iPhone 17 Pro series and maintaining stable product quality and performance. This is a more pragmatic and prudent choice for Apple.

Therefore, although many consumers may be disappointed that the iPhone 17 Pro series will not feature a 2nm chip, this delay may ultimately lead to a more mature and stable 2nm technology for future iPhones, bringing greater performance improvements and lower power consumption. The collaboration between Apple and TSMC will continue to drive advancements in mobile chip technology, providing consumers with more powerful mobile devices. The iPhone 18 Pro series, expected in 2026, is projected to be the first Apple phone to feature TSMC's 2nm chip, allowing consumers to experience the significant performance and energy efficiency improvements firsthand. This delay also gives TSMC more time to optimize its 2nm process, improve yield, and reduce costs, preparing for future mass production. Ultimately, consumers will benefit from more mature, higher-performing, and lower-power mobile chip technology.